What Kind of Insurance Does My Small Business Need?July 10, 2017
Insuring your small business is not the same thing as insuring your home or car; there are specific kinds of coverage that may or may not be worth your money. Before you sign on the line with your provider, be sure to review our list. You may find that your contract has duplicative coverage, or worse—that it leaves you open to some industry-specific calamity your agent was unaware of.
First things to consider before purchasing insurance:
Much of the insurance that falls under the “small business” label is for businesses with employees. If you are an entrepreneur or freelancer, then you should review these plans thoroughly since they may not fit your needs.
With that in mind, this is not an exhaustive accounting of all business insurance out there, but this list of insurance types should give you a general overview of the landscape.
This foundational business insurance is great to have no matter what you do. It protects against loss or damages your business might happen to cause, whether it be bodily injury or property.
Got stuff? Every business has tools or equipment to operate, in addition to inventory. Property covers losses to your business contents so you don’t have to shell out big bucks to get back up and running.
Home-Based Business Insurance
Odds are your home insurance won’t cover claims made from operating your small business from your house. This insurance will.
Life Insurance is a great asset for any entrepreneur since the right plan can eventually be drawn on in a pinch—while still holding the death benefit for your beneficiary.
If you’ve got employees, you know you’ve got risk. We all have the tendency to bump into things every once in a while, and when that leads to injury, you’ll need Workers Comp to help out.
Professional Liability Insurance
If you mistakenly give bad advice or recommendations or are unable to perform the work you’ve been hired to do, this insurance (typically for lawyers, accountants, etc.) will help keep things in order. Your business will remain unscathed by their poor choices. Remember that you aren’t buying insurance just for the potential for your business to answer to Fate. The coverage is also there for when someone tries to blame your small business for something you didn’t do.
Directors and Officers Insurance
Just as it sounds, this insurance handles situations your small business’s directors or officers might find themselves in.
Data Breach or Cyber Theft
If you handle any personally identifiable information, you should seriously consider this insurance, because in this digital age, you’re better off being safe.
Commercial Auto Insurance
Any small business that operates a fleet of any size needs to have this insurance. We all know how easily automobile accidents happen, and with a commercial fleet, you really shouldn’t let that dented fender go for too long. Even an individual entrepreneur using their personal automobile for business purposes may want to consider this insurance.
This is by no means an exhaustive list, but it should give you an idea of what is out there to protect your entrepreneurial venture, freelance gig, or growing small business. As with anything you agree to pay for, read the specifics.
And while we’re at it, you should ask your insurance provider about bundled coverage—like with a Business Owner’s Policy—that can cover a number of things other single plans from our list might handle, only with additional perks.Tags: insurance plans for small businesses, small business insurance, types of business insurance
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This post was written by SMB Insurance